External costs can be defined as
A) the cost associated with private production, but partially borne by society.
B) the sum of all private production costs.
C) the cost of running the federal government.
D) the cost of providing all public goods and services.

Question

Quizplus · Accepted Answer

External costs are costs that are associated with private production but are partially borne by society or third parties who are not involved in the production process. These costs include negative environmental impacts, health-related expenses, and social costs. Option B, C, and D are incorrect as they do not accurately define external costs.

External Costs Can Be Defined as